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Dec 21, 2012

No claim if car is rammed by friend

Insurance companies apply
for the regulator IRDA (Insurance regulatory development authority) to pass a
bill with which the accidental claim will reject if the car is rammed by friend.
This will definitely bring down the number of joyrides as well as rent the car
from friends and neighbors.

On insurance, the company
will ask for the members who will drive the car. The list must be filled by the
owner of the car. The premium may be up and down depending on the number of
persons fill in the form. If the person who is not in the list rams the car,
there will be no claim passed on that accident by the insurance company. Even in
the case the person has a valid driving license.

Insurance companies are in
loss as there are many third party claims they need to pass. There is poor
underwriting standard in the insurance and the third party fake claims are too
high.

Although the proposal is
still with the IRDA and it will only apply if the regulator pass it.

The insurance companies
also thinking of take help from the CIBIL report before doing insurance. CIBIL
report is the instrument with which the banking companies approve or reject the
loan application as it shows all the credit report of the person/company as
well as gives point as per credibility. More on CIBIL report from here.

If the CIBIL report is
satisfactory and have the score more than 750, insurance companies will offer
around 40% discount on insurance premium. Whereas if the CIBIL report is not
good, the discount will cut down to 5-10%.